Tales and Opinion from the Front End of Credit Broking

Monthly Archives: April 2014

Last week, I was invited to present to a network of IFAs, and a very constructive experience it was.

For a long time in my career in second charges it has felt like second mortgage packagers have been looked on as junior partners at best. Now, I am by no means the most neurotic individual within the packager landscape, however it would be fair to say that even I have perceived a tangible derision from IFAs to second mortgages, moreover, second mortgage packagers.

I’d never really understood it until a conversation with the principle of the network I visited!

A conversation that went something like this (when I say “something like this” I mean to say “exactly like this”):

Me: “So I won’t ask which second charge packagers you use as that would be lazy to play myself off against them, however I would ask, individually, how many second mortgages do you introduce per year?”

Principle: “I don’t do them, well, I didn’t do them, MMR has changed that which is why you are here”

(at this point it might be worth saying that I don’t know what my face is doing 100% of the time, I think it might have looked something like this:

only less Chinese)

Me: “Why not?”

Principle: “Because *** phone me every couple of days pestering me for business, I am so sick and tired of them, I have even told them to f*** off and it doesn’t work, it has put me right off secured loans because *** keep banging on about being market leading, so if the market leaders are this much of a pain in the arse it doesn’t look great.”

Me: “Oh…well we are very different to ***, let me prove it”

Happily since that conversation, the network has sent me half a dozen leads, but it did get me thinking.

How many other independent advisors, mortgage brokers, networks are getting the wrong impression of what we do based on output from companies with greater market presence and all the bright marketing, but less expertise/professionalism?

That may well come across as me being conceited, but it seems that light travels faster than sound that’s why some people appear bright until you hear them speak, is an unfortunate and depressing truism in our industry.

To top it off, a couple of days after this meeting, we had an email from *** asking for our referrals, here it is:

Hello,

To Further our call a little time ago, I am sending you this email to point out the pro’s and con’s of using ***.

As I mad you aware on the telephone we specialize in bridging and commercial finance.

Why should you use us? Well, we are one of the best on the market at placing business.

We also have all of these reasons:

No exit penalties available.

13 years experience

Over 100 close relation lenders.

Loans available in England, Wales & Scotland.

Minimum loan of £25k

No Maximum

Working to 65-70% ltv.

Dedicated broker managers.

To Give you a basic information of what I am offering,

If you were to pass me a case, I would undertake all work associated with the case in hand.

All that I would ask of you is to keep your client informed of exactly what stage we are at, and inform them of all details I would pass on to yourself. The reason I ask this is due to the fact that I understand that you have a fantastic relationship with each and every one of your clients and I would not want that to change in any way shape or form.

Personally I like to be fast an efficient in all the work I do. So from the second you pass me a case I will be attentive and try my very best to get you terms in the same day.

A massive incentive for you passing me a case is cash. And that is exactly what I am offering.

A bridging loan should be completed in 14 days, if not then it’s not a bridge.

On the 14th day ( day of completion ) I would simply hand you 50% of the commission. On average I pay £1000 to £1500 for any bridging case passed to me.

Not a bad little wage to earn of me doing work on your case!

I hope this educates you more on what exactly ***as a business offer.

I hope to hear from you soon.

Kind Regards

Aside from removing the trading name, this email is unchanged.

We have NEVER had a conversation with the company in question to introduce business to them, and the greeting is impersonal, but that doesn’t begin to explain how bad it is really does it?

If potential partners are considering introducing business to a third party, a secured loan/bridging packager in particular, to a product marketplace for which they have in the past held a dim view; is it fair to suggest that an email from “market leaders”, containing; misplaced capitals galore, hilarious miss-spelling “as I mad you aware” (this awareness must have been “mad” during the imaginary conversation we had), phantom apostrophes and a myriad of grammatical crimes, would put them off engaging?

let’s be honest, it reads like Arthur Daly trying to flog a second hand greyhound “A massive incentive for you passing me a case is cash. And that is exactly what I am offering.”… shudder

If anything, it gives the impression that the entry level for employees within our industry is very low indeed.

Rest easy finance professionals, second charge/bridging packagers aren’t all glorified chimps tea parties, it just so happens that the emptiest vessels making the most noise, are clouding your judgement.